Irish TAC Annual Report 2023

2023 demonstrated the TAC’s commitment to modernity and efficiency as the Commission undertook a Lean Six Sigma review of every process in Q1 2023, in anticipation of the introduction of a new case management system and online portal. TAC is the first appellate level forum in Ireland for appeals against Irish tax assessments. Highlighted below are some of the key points arising from the report and our take on associated trends.

Case Statistics

Introduced in 2016 and replacing the Office of the Appeal Commissioners, the TAC is responsible for administering tax appeals across all tax heads ranging in complexity and quantum, and is one option open to a taxpayer disagreeing with a Revenue decision or assessment.

On its inception, the TAC took on a significant number of legacy appeals (appeals made directly to Revenue prior to establishment of the TAC, of which there were 1,157 at 2016) and pre-establishment appeals (appeals made to the Office of the Appeal Commissioners, of which there were 289 in 2016). The TAC has made steady progress through this caseload: reducing in 2023 from 226 to 191 and 26 to 15, respectively. This progress is impressive when one also considers that an additional 1,156 new appeals were filed in 2023.

We note a total of 1,139 cases on-hand at the end of 2023, a decrease on the 553 cases scheduled for hearing in 2022. Although the number of appeals scheduled in 2023 was lower than 2022, the quantum of appeals scheduled increased significantly by over 130% (from €601m in 2022 to €1.4bn in 2023). The TAC report notes that appeal cases are following the trends seen in the courts and other decision-making bodies of becoming ever more complex with multiple issues, and that the interaction of national and European law is becoming a feature of many more appeals. It was noted that this adds to the duration of hearings and the complexity of the determinations. The duration of the hearings ranged from a half day to three weeks. Undoubtedly, this trend of increasingly complex appeals is likely to continue into the future.

Quantum, case complexity and value

The quantum in dispute in relation to appeals received in 2023 totalled €613m. The 1,139 cases at hand at the end of the year were valued at €519m. During the year the TAC stated 26 cases to the High Court (up from 16 in 2022).

Settlement

411 hearings were scheduled for hearing in 2023, a decrease on the 553 cases scheduled for hearing in 2022, with around 33% settling prior to hearing and 1% settling post-hearing.

Increased use of technology

The Commission continues to utilise remote hearings and case management conferences (CMCs) in order to progress appeals and increase accessibility and equality for the public in accessing the appeals process. In 2023, 162 hearings and 25 CMCs were scheduled remotely. There was a notable 10% decrease in remote hearings held since 2022, likely due to the decline of Covid-19.

The TAC also made the decision in 2023 to have a paperless office and rely on digital records only. The new case management system tracks and records all work streams and provides a ‘real time’ insight into appeals on hand and instantaneous management statistics. In addition, it was noted that the TAC’s new public portal facilitates the online completion and submission of notices of appeal by the public, and requires no manual intervention, thus ensuring cogent and up-to-date statistical information.

Conclusion

Under a wide variety of metrics, 2023 marked a transition towards increased modernity and efficiency for the TAC. The Lean Six Sigma review, new case management system, and new online portal will serve to enhance the Commission’s operation. In relation to the hearing and adjudication of appeals, for another year, the Commission closed more appeals than it opened.

Since its establishment, the TAC has now closed almost 11,000 appeals involving a quantum of over €6.5bn.

For more information on this, please contact Paul Fahy, Partner and Head of Tax, Cian Ryan, Solicitor or any member of A&L Goodbody's Tax team.

Date published: 1 July 2024